January 1st 2010 will see the threshold for stamp duty return to its previous level of £125,000 down from £175,000. Whilst the reduction was widely predicted, it has been criticised widely by those in the industry. In particular, Estate Agents are now calling for new measures to help First Time Buyers.
ARLA also expressed their disappointment, claiming the minister had not included ‘any initiative that will make any difference’ to the housing market.
There may be some good news for landlords however as the lettings market may benefit from the reduced stamp duty threshold. Some in the industry are expecting to see an increase in tenant demand early next year. Andrew Sainsbury of Go Property Services said ‘those living with their parents whilst saving for a deposit for their first home may now consider renting for the medium term instead. Current tenants who had been considering a purchase are now more likely to continue renting. Both factors should see tenant demand rise when the lower threshold comes into effect.’
